79(3) HB 2 - Engrossed version


                                                                                



By:  Pitts, Kolkhorst, Callegari, et al.                          H.B. No. 2  



A BILL TO BE ENTITLED

AN ACT

relating to the allocation of certain revenue from franchise taxes, 
motor vehicle sales and use taxes, and taxes on cigarettes and other 
tobacco products to provide property tax relief.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  (a)  Subchapter G, Chapter 403, Government Code, 
is amended by adding Section 403.109 to read as follows:
	Sec. 403.109.  PROPERTY TAX RELIEF FUND.  (a)  The property 
tax relief fund is a special fund in the state treasury outside the 
general revenue fund.  Money in the fund may be appropriated only 
for a purpose that will result in a reduction of school district 
maintenance and operations tax rates to rates that are less than the 
rates in effect on January 1, 2006.  To the extent to which 
maintenance and operations tax rates are reduced using money from 
the property tax relief fund, reductions must be carried out so as 
not to increase the disparity in revenue yield between districts of 
varying property wealth per weighted student.
	(b)  The fund is exempt from the application of Sections 
403.095 and 404.071.  Interest and income from deposit and 
investment of money in the fund must be allocated monthly to the 
fund.
	(c)  The comptroller of public accounts must certify that the 
deposits made to the credit of the property tax relief fund under 
Sections 152.1222, 154.6035, 155.6035, and 171.4011, Tax Code, are 
sufficient to cover the cost of any property tax rate reduction 
authorized by the 79th Legislature, 3rd Called Session, 2006, 
before the legislature may appropriate money from the fund for any 
other purpose authorized by this section.
	(b)  This section takes effect only if _.B. No. _____, _.B. 
No. _____, or _.B. No. _____, Acts of the 79th Legislature, 3rd 
Called Session, 2006, is enacted and becomes law.  If none of those 
Acts become law, this section has no effect.
	SECTION 2.  (a)  Subchapter I, Chapter 171, Tax Code, is 
amended by adding Section 171.4011 to read as follows:
	Sec. 171.4011.  ALLOCATION OF CERTAIN REVENUE TO PROPERTY 
TAX RELIEF FUND.  (a)  Notwithstanding Section 171.401, beginning 
with the state fiscal year that begins September 1, 2007, the 
comptroller shall, for each state fiscal year, deposit to the 
credit of the property tax relief fund under Section 403.109, 
Government Code, an amount of revenue calculated by:
		(1)  determining the revenue derived from the tax 
imposed by this chapter as it applied during that applicable state 
fiscal year; and
		(2)  subtracting the revenue the comptroller estimates 
that the tax imposed by this chapter, as it existed on August 31, 
2007, would have generated if it had been in effect for that 
applicable state fiscal year.
	(b)  If the amount under Subsection (a) is less than zero, 
the comptroller shall consider the amount to be zero.
	(b)  Except as provided by Subsection (c) of this section, 
this section takes effect September 1, 2007.
	(c)  This section takes effect only if _.B. No. _____, Acts 
of the 79th Legislature, 3rd Called Session, 2006, is enacted and 
becomes law.  If that Act does not become law, this section has no 
effect.
	SECTION 3.  (a)  Subchapter G, Chapter 152, Tax Code, is 
amended by adding Section 152.1222 to read as follows:
	Sec. 152.1222.  ALLOCATION OF CERTAIN TAX REVENUE TO 
PROPERTY TAX RELIEF FUND.  (a)  Notwithstanding Section 152.122, 
the comptroller shall deposit to the credit of the property tax 
relief fund under Section 403.109, Government Code, the amount of 
money received under Section 152.121 that is estimated to have been 
derived from the computation of the tax imposed by this chapter on 
the standard presumptive values of motor vehicles.
	(b)  The comptroller shall determine the amount described by 
Subsection (a) using available statistical data.  If satisfactory 
data are not available, the comptroller may require county tax 
assessor-collectors to report additional information to the 
comptroller as necessary to make the allocation required by 
Subsection (a).
	(b)  Except as provided by Subsection (c) of this section, 
this section takes effect October 1, 2006.
	(c)  This section takes effect only if _.B. No. _____, Acts 
of the 79th Legislature, 3rd Called Session, 2006, is enacted and 
becomes law.  If that Act does not become law, this section has no 
effect.
	SECTION 4.  (a)  Subchapter J, Chapter 154, Tax Code, is 
amended by adding Section 154.6035 to read as follows:
	Sec. 154.6035.  ALLOCATION OF CERTAIN REVENUE TO PROPERTY 
TAX RELIEF FUND.  Notwithstanding Section 154.603, all proceeds 
from the collection of taxes imposed by this chapter attributable 
to the portion of the tax rate in excess of $20.50 per thousand on 
cigarettes, regardless of weight, shall be deposited to the credit 
of the property tax relief fund under Section 403.109, Government 
Code.
	(b)  Subchapter H, Chapter 155, Tax Code, is amended by 
adding Section 155.2415 to read as follows:
	Sec. 155.2415.  ALLOCATION OF CERTAIN REVENUE TO PROPERTY 
TAX RELIEF FUND.  Notwithstanding Section 155.241, all proceeds 
from the collection of taxes imposed by Section 155.0211 
attributable to the portion of the tax rate in excess of 35.213 
percent of the manufacturer's list price, exclusive of any trade 
discount, special discount, or deal, shall be deposited to the 
credit of the property tax relief fund under Section 403.109, 
Government Code.
	(c)  Except as provided by Subsection (d) of this section, 
this section takes effect September 1, 2006.
	(d)  This section takes effect only if _.B. No. _____, Acts 
of the 79th Legislature, 3rd Called Session, 2006, is enacted and 
becomes law.  If that Act does not become law, this section has no 
effect.
	SECTION 5.  (a)  For purposes of providing transparency and 
accountability, the comptroller of public accounts shall publish in 
the Texas Register no later than December 31 the following 
information for the previous fiscal year:
		(1)  the total revenue collected and deposited to the 
credit of the property tax relief fund by revenue source;
		(2)  the total cost to cover the property tax relief 
authorized by the 79th Legislature, 3rd Called Session, 2006, and 
the total amount appropriated to cover the cost by source of 
revenue; and
		(3)  the total amount by which the revenue in 
Subdivision (1) of this section is less than or greater than the 
total cost in Subdivision (2) of this section.
	(b)  The comptroller of public accounts shall include in the 
biennial revenue estimate an estimate of the total amount of 
revenue to be deposited to the credit of the property tax relief 
fund, by source of revenue, and an estimate of the total biennial 
cost to the state to cover the property tax rate reduction 
authorized by House Bill 1 and any other legislation authorizing 
property tax relief enacted by the 79th Legislature, 3rd Called 
Session, 2006.  The comptroller shall calculate the amount by which 
the estimated revenue in the property tax relief fund is less than 
or greater than the state cost to cover the property tax relief 
authorized by the 79th Legislature, 3rd Called Session, 2006.
	SECTION 6.  To the extent of a conflict between a provision 
of this Act and a provision of any other Act of the 79th 
Legislature, 3rd Called Session, 2006, the provision of this Act 
prevails, regardless of relative dates of enactment.
	SECTION 7.  Except as otherwise provided by this Act, this 
Act takes effect September 1, 2006.